However, a rapid increase in supply, including through the US shale gas revolution, has put downward pressure on LNG prices, and in turn, considerable strain on the industry. Throughout these challenging times, we must not forget that the long term prospects for the sector remain strong. Notably, the International Energy Agency forecasts that the global demand for gas will increase by around
50 per cent between now and 2040. Further, a 23 per cent increase in the world’s population between 2010 and 2030 and a more than doubling of the world’s middle class during the same period will only fuel this growth as economies develop.
China remains hungry for energy to power its economic transformation and with its per capita energy consumption still a third of that in the United States, the opportunities for the LNG industry are immense.
Likewise, by 2040, the Indian economy will be five times larger than it is today, while emerging economies such as Indonesia, Malaysia and Pakistan are also looking for solutions to satisfy their growing energy needs. Such economic growth will require reliable energy supplies such as LNG to support this development.